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Bullboard - Stock Discussion Forum Majestic Gold Corp. V.MJS

Alternate Symbol(s):  MJGCF

Majestic Gold Corp. is engaged in mineral resource exploration, development and extraction. It operates the Songjiagou open pit gold mine in the eastern Chinese province of Shandong. Songjiagou Gold Mine covers over 75.04 square kilometers in Muping, Yantai, Shandong Province, China. It has four separate tenements, including E36/918, E37/1334, E63/2110 (Kumarl) Tenement and E77/2817 (Moorine... see more

TSXV:MJS - Post Discussion

Majestic Gold Corp. > IPO Shares Lockdown Period
View:
Post by nozzpack on Jun 14, 2023 7:54am

IPO Shares Lockdown Period

Pre IPO shares on the HJEX are locked downed for 6 months after the IPO listing date.
For a cornerstone investor like Majestic , its longer....at least a year and perhaps longer.

The IPO usually has two stages.
Initially for retail investors  and sub sequentially ( 3 months ? ) for institutiinal investors .

Total new shares will be 20 million assuming WeBull is correct on post IPO shares o/S of 80 m.

Assuming normal 2 stage IPO, at most 10 million shares will be available for trading from the Retail IPO.

Thats not a lot of shares and some of those will be undoubtedly Longs.

Acquisitions of Gold Companies will be done in three stages......

Period 1 ending Sept 31

Period 2 ending December 31

Period 3 ending June 30/24

Each will be accompanied by a capital cost contribution .

Its my opinion, based on reading the HKEX documentation, that somewhere in the range of 4-5 gold mines will be acquired during this period.

So, there will be good promotable news for all three planned acquisition  stages, along with ongoing development news for the existing two mines.

Other points

1..Equity raisings  ( non IPO ) are permitted three months after the initial IPO at a price not less than IPO price

2...this could be by convertible debentures 

3...I assume that one or more acquisition could involve direct Persistence shares

4..Majestic is the Cornerstone investor ........Could it buy more shares as part of the Institutiinal IPO ?

5...Could Majestic acquire more shares via subsequent Equity raises ?

Based on Persistence minimum acquisition criteria... stated in HKEX docs... of acquiring at least 51% of gold mines with at least 300,000 ounces of economic gold resources, capable of producing at least about 20,000 ounces per year, its quite possible that by exit June 2024, Persistence will have acquired control of up to, if not at least,  100,000 ounces of new future production along with up to, if not at least, 1.5 million economic resources.
 

It's my view and why I am invested here that there will be plenty of investor promotable material/ events/ developments over the next year to move our share price at least a triple or more from current
grossly under valued prices.

GLTA

Comment by Armitage45 on Jun 14, 2023 11:54am
Thanks for your research nozzpack! sounds like a reasonable time frame and would explain the present zero interest here  so if we go to 0.04 again this could be a real homerun next year! ;-) 
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